For many homeowners, the most stressful part of owning a home is not the mortgage, it is the unexpected repair. A broken furnace in winter, a failed air conditioning unit during a heatwave, or a leaking water heater can turn into an urgent and expensive problem overnight.

While homeowner’s insurance is essential, it does not usually cover breakdowns caused by normal wear and tear. That gap is where a home warranty becomes an important layer of protection.

A home warranty is a service contract designed to help cover the repair or replacement of major home systems and appliances when they stop working due to everyday use.

This can include heating and cooling systems, plumbing, electrical components, and common appliances like refrigerators, ovens, and washing machines. According to homeowner guidance from Select Home Warranty, the goal is to help homeowners avoid sudden, high out-of-pocket repair costs and replace uncertainty with predictable expenses.

One of the main advantages of a home warranty is financial stability. Home systems and appliances rarely fail at convenient times, and repair costs can quickly climb into the hundreds or thousands of dollars.

With a home warranty, homeowners typically pay an annual fee and a service call fee when repairs are needed, rather than facing the full cost of an unexpected breakdown. This can make household budgeting far more manageable, especially in older homes where systems may be nearing the end of their lifespan.

Another benefit is simplicity and convenience. When something breaks, many homeowners are left scrambling to find a reputable technician, compare prices, and schedule repairs. Home warranty providers such as Select Home Warranty coordinate the repair process by connecting homeowners with qualified service professionals. This saves time and reduces stress, particularly during emergencies or busy periods.

Home warranties are also commonly used in real estate transactions. Sellers may include a warranty to make a property more attractive, offering buyers reassurance that major systems are protected during their first year of ownership. For buyers, this added coverage can provide peace of mind while they adjust to the costs and responsibilities of a new home.

Not all home warranties are the same, which is why comparison is important. A recent Forbes Advisor review of the best home warranty providers highlights the need to carefully review coverage limits, exclusions, service fees, and customer satisfaction ratings. Understanding what is covered and what is not helps homeowners choose a plan that aligns with their needs and avoids surprises later.

A home warranty does not replace homeowner’s insurance, but it works alongside it. Insurance protects against sudden disasters, while a home warranty focuses on the inevitable wear and tear that comes with daily living. Together, they offer a more complete approach to protecting one of life’s biggest investments.

For homeowners looking to reduce stress, control repair costs, and protect their household budget, a home warranty can be a practical and often overlooked solution.